Delta Air Lines ( DAL ) Q4 2024 Earnings

Delta Air LinesFriday’s first-quarter forecast beat analysts’ expectations as the carrier forecast strong travel demand for the start of the year, which CEO Ed Bastian said was likely to be the best in the carrier’s history.

Delta said it expects to generate more than $4 billion in free cash this year, up 18% from 2024 and in the middle of its annual goal of $3 billion to $5 billion. For the full year, it expects annual adjusted earnings of more than $7.35 per share.

“We’re feeling pretty good going into the new year,” Bastian told CNBC. “We’re seeing everywhere that consumers continue to prioritize experiences over goods.”

This sets Delta up for “our best fiscal year in our history,” Bastian added.

Here’s how the company performed for the three months ended Dec. 31, compared to Wall Street expectations based on LSEG consensus estimates:

• Earnings per share: An adjusted $1.85 vs. $1.75 expected
• income: $14.44 billion adjusted against $14.18 billion expected

Delta said it expects revenue to grow 7% to 9%, ahead of the roughly 5% forecast by analysts polled by LSEG. The carrier expects first-quarter earnings to be between 70 cents and $1, slightly ahead of Wall Street estimates of between 65 cents and 97 cents.

The Atlanta-based airline was the first major U.S. airline to report earnings this quarter. Carriers are enjoying strong demand for travel following the pandemic, which analysts say is likely to continue this year, with several transactions along the way for consumers.

Delta said it is using the trend to premium travel as more customers pay for more spacious seats or reward credit cards.

Delta American Express the partnership brought in $2 billion in the fourth quarter, a 14% year-over-year increase. Revenue from premium seats, such as first class and premium economy, rose 8% in the fourth quarter to $5.2 billion, compared with a 2% rise in cabin ticket revenue to about $6 billion.

Unit revenue, which shows how much revenue an airline makes per flight, rose 4% in the fourth quarter from 2023.

Delta’s profit fell 59% to $843 million in the final three months of the year compared to the same period in 2023 as costs, including wages, rose 7%, or $942 million. Revenue rose 9% to $15.6 billion from last year.

Adjusted for one-time items, Delta posted fourth-quarter earnings per share of $1.85 on adjusted revenue of $14.44 billion, beating analysts’ estimates.